Buying Gold Silver Guide – Does Brand matter?

There are a variety of brands available for both silver and gold, so the question on everyone’s mind is:-

Does brand matters?

 

There are refinery that cast or mint their own brands, selling it as close to spot prices as possible, there are private mints and are government / public mints, there are financial institutes that forge their own brands on gold / silver that is refined by other 3rd parties. There are European brands, Australia brands, Chinese brands etc etc.

Do they matter?

It actually depends on investors’ preferences. Some brands like RCM (Royal Canadian Mint) is reputed with very pure silver at the lowest premium in the market. Certain other brands, would demand a higher brand premium over the metal value of the bar / coin.

Bar / Coin = Metal Value + Premium

As the metal value depends on the spot prices of the gold and silver, you are essentially paying the premium of the brand.  RCM has low premium. Certain brands like Panda series from China Mint has a much higher premium for its coins.

Whether it is worth it, it depends on the investor prospector. For example, CML (Canadian Maple Leaf) and ASE (American Silver Eagle) has very low premium over their coins, while Chinese Panda has a high premiums. This premium may not be fixed.

For example, if you have bought CML or ASE in 2011 or 2013 because it costs a lot less than the Chinese Panda series, the current value of CML and ASE in 2015 is still roughly the same as the metal value and the same low premium. Those collectors with the Panda series would be laughing their ways to the banks as the Panda’s premiums has rocketed. Of course this is not a sure thing, so collectors may have to judge their risk-reward ratios.

Pamp Suisse Gold Bar Lady Liberty 1 oz

Another factor is the recognition of the brand. For example PAMP Suisse is highly recognised, especially by the elder generation. Hence PAMP Suisse is seen as a more luxurious brand.

Lastly, in Singapore, for investment silver and gold that investors can enjoy stacking up without paying the extra 7% GST, they have to patronise only certain brands that are considered IPM (Investment Precious Metals). These brands has to be under LBMA’s (London Bullion Market Association) Good Delivery lists. As such, it is important for stackers to buy silver or gold from these lists as you would be buying them a lot cheaper than if you were to buy a jewellery-branded gold bar that attracts 7% GST.

Except for numismatic bars and coins set, all the silver and gold in Gold Silver City are all classified under IPM, and hence has NO addition GST on them. It would be much more financial prudent to start investment without paying this extra 7% tax.

Feel free to LIKE facebook page of www.facebook.com/goldsilvercitysg for latest updates!

Buying Gold Silver Guide - Gold or Silver?

Buying Gold Silver Guide – Gold or Silver?

For all new stackers who wish to start saving their hard earned money in physical metal, the first question usually arise would be:-

Which precious metal?

Well, firstly  precious metal is a rare, naturally occurring metal of high economical value. We have used precious metals previous as currency, such as coins and taels. With the creation of modern fiat currency, precious metals are now widely regarded mainly as investment and industrial commodities.

The best-known precious metals are  gold and silver. There are other precious metals such as ruthenium, rhodium, palladium, osmium, iridium and of course, platinum. However, these rare precious metals are rarely traded and less liquid as the 2 most common precious metals known to us – Gold and Silver.

Let us focus on Gold and Silver, which are the popular precious metal in Singapore.

Gold –

Currently as of 16 August 2015, the spot price of gold is SGD $1567.53 per troy ounce (or USD $1114.30)

Valcambi Suisse Minted Gold Bar

Gold is the most recognised, most liquid precious metal. Not only is it easier to buy, it is easier to liquidate for cash too. Gold is a popular jewellery, but for investment, we would only deal with investment grade gold, in the form of bullion bars or coins. You can buy pure gold coin or bars from bank, such as UOB head branch, or jewellery stores. These are usually a lot more convenient, almost any jewellery stores would have gold bars of different sizes for sales.  Unfortunately, most of these gold bars and coins are sold at a high mark up. The high mark up is mostly because of the high rental costs and branding of the bank or jewellery stores.

You can also visit shops that specialise in bullion gold / silver, the markups are low as they specialise in bullion products and generally has less recognition power compared to UOB or big brand jewellery name like Poh Heng Jewellery. A quick search would reveal many bullion shop such as Gold Silver City in Singapore or Gold Silver Singapore.

Most importantly, the reason why Gold is the top choice of many investors is because it is so recognised in value and easy to liquidate. You can sell gold easily, without too much loss in value. Most banks and jewellery franchise buyback, though they cut a commission for themselves. You can sell to bullion shops,  majority of them buybacks. You can visit any pawnshops in your neighbourhood and you can get cold hard cash easily. If you bother to use forums, eBay, carousells or other avenues, you can even get a slightly better price. It is that easy to convert your investment into cash.

The biggest disadvantage of gold is that it is so costly, and it may be difficult for cost averaging when one small gold coin of 1 ounce costs $1600. Thankfully there are gold bars and coins that are smaller. For investment, gold is a bit more demanding on the pocket.

Silver

Currently as of 16 August 2015, the spot price of silver is SGD $21.52 per troy ounce (or USD $15.30)

As you can see, the biggest advantage of stacking silver is that it is light on the pocket. One ounce of silver costs you only a meal at a causal restaurant in Singapore. That is also why Robert Kiyosaki of Best Selling Book  “Rich Dad, Poor Dad” strongly allocates buying silver, even for workers who are struggling to meet the challenges of rising costs of living. One can afford to stash away a few coins or bars monthly to save up for the future, rather than splurging on movies or costly meals.

Another advantage is that many silver investors find silver to be a higher potential in risk-reward ratio than gold. As the price of silver is so low currently, the chances of it doubling or tripling is a lot more likely than gold. ($1600 SGD double to $3200 SGD is a lot harder than doubling from $22 SGD to $44 or $66) Also there is a good chance the gold silver price ratio may move towards more silver. There are increasing industrial demand for usage of silver in our smartphones, solar panels etc.  Hence, there is a lot more speculative return potential on silver.

The biggest drawback of silver is that it is harder to buy or sell. Most jewellery stores do not sell silver, neither do banks. Bullion shops that specialise in precious metals would definitely sell silver coins or bars for investors. In Singapore there are many bullion shop such as Gold Silver City in Singapore or Gold Silver Singapore. It would be difficult to buy silver from convenient locations such as jewellery stores or banks.

If you like to sell your silver for cash, it is definitely more challenging than selling gold. Banks, jewellery stores and most pawn shops do not buy silver, so your only choice is via bullion shops that buy back. You may also sell them via forums and ebay. Thankfully silver is starting to get more recognised, and there are some pawnshops that are beginning to buy and sell silver. Silver would definitely get more traction.

In summary here are simplified pros and cons of gold and silver.

Gold- Pros:

More recognised. Easy to buy and sell.

Gold- Cons:

Higher dollar investment per ounce

Silver- Pros:

Lower dollar investment per ounce
Higher potential risk-reward ratios

Silver -Cons:

Less liquid- less locations to sell off.

(Source: http://goldsilvercity.com.sg/buying-gold-silver-guide-gold-or-silver/)

Buy Silver Gold Singapore Free Delivery?

Buy Silver Gold Singapore Free Delivery?
Gold Silver City now offers you an easy way to invest and save up in physical silver and gold! You can now buy silver or gold, either in bars or coins, from the comfort of your home. You only pay for it when it arrives at your doorstep.

Buy Silver Gold Singapore Free Delivery

We deliver the silver and gold to your location. For this soft launch of our website, we have reduced the minimum requirements. That is right, instead of the usual 100 oz silver minimum purchase, all combined purchases above $200 is entitled to qualify for this FREE delivery offer!
This free delivery will last till 1st June 2015, on our official launch date! Do stay tuned on this website or like our Facebook page for special launch promotion!

And to top it off, we are currently the lowest priced for all of our silver and gold bullion and numismatic coins in Singapore! Not only are our gold and silver prices the best in Singapore market, you are getting a special delivery service with it. There are no financial risks as you only pay when delivery is made to your location.

As mentioned in our About Us, we have our background in 30 over years of construction business. We are vested to provide high grade silver and gold precious metal to all our clients!

Please do take advantage of the current low historical silver and gold spot rate to Buy Silver Gold Singapore Free Delivery!
This is a simply great time to start saving up in precious gold and silver.

PS: If you know a good deal, please do share it with your friends! Please Like and Share our facebook page, or recommend your relatives and friends to us. They would appreciate you recommending a good deal. =)